Health care changes could have large impact on USD 490

Changes in health care with the Affordable Healthcare Act could have a drastic impact on USD 490 in coming years.

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By Julie Clements

Butler County Times Gazette

By Julie Clements

Posted Nov. 14, 2012 at 1:35 PM

By Julie Clements
Posted Nov. 14, 2012 at 1:35 PM

El Dorado, Kan.

Changes in health care with the Affordable Healthcare Act could have a drastic impact on USD 490 in coming years.

Norm Wilks, director of fiscal services, said there was no decision on the real effects of the Act.

"The purpose of the discussion is to alert you where we are in both the co-op and with the USD regarding the Affordable Healthcare Act," he said. "There is a fairly high level of expectation now that President Obama has been re-elected that we are likely to see some regulations coming out of the Internal Revenue Service and the Department of Labor.

"I think it's critical that you understand as a board if we continue doing the same thing we are doing now our costs will go up significantly," Wilks said.

Under the new act, employees working 30 hours or more a week would be considered full-time and would be entitled to health insurance, something they do not receive now.

Wilks said they were not sure what that would mean with nine-month employees; if they could average their time over a year to keep them part-time or they would be considered full-time.

"It's critical we know what the rates are," he continued.

Currently, paras, building aids and other part-time employees are not covered by district health insurance.

If the district continues to pay $355 a month for full-time employees, and they had to include those additional employees, they would see a $450,000 increase with no increase in revenue.

"The cheapest economic decision is we do away with all healthcare and we pay a $2,000 per employee penalty but that is the wrong thing to do for our employees, so we need to develop a plan that provides the essential health benefits required by the Act," Wilks said.